Morning Briefing: Meridian Mining Publishes the PFS for Cabaçal
Good morning and welcome to the Mining Stock Daily Morning Briefing. I’m Trevor Hall.
It's Monday, March 10th.
Last week many of us within the mining industry flocked to Toronto for the annual PDAC pilgrimage, when it is often nicknamed the PDAC curse for the metals and mining equities. We walk in with optimism only to be battered and bruised by markets and late night social functions over a 4-day span. But that was not necessarily the case last week. Gold rallied last week, adding about $50 to its price and closing its April contract above $2,900oz once again. The gold miners per the GDX and GDXJ also rallied into the week with both meeting some technical resistance on their charts. Silver closed the week up 4% and settled at $32.81. Copper also had a very strong week, reaching resistance at $4.80/lb but fading a bit on Friday and today. The latest economic data out of China suggests there remains weakness in demand and producer and consumer prices declined in February.
We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by…Integra Resources
Integra is a growing precious metals producer in the Great Basin of the Western United States. Integra is focused on demonstrating profitability and operational excellence at its principal operating asset, the Florida Canyon Mine, located in Nevada. In addition, Integra is committed to advancing its flagship development-stage heap leach projects: the past producing DeLamar Project located in southwestern Idaho, and the Nevada North Project located in western Nevada. Learn more about the business and their high industry standards over at integraresources.com
And here’s what you need to know this morning…..
Meridian Mining published their new preliminary feasibility study for the Cabaçal gold-copper-silver deposit in Brazil this morning. The company calls the economics exceptional with a base case after-tax NPV of USD $984M and an IRR of 61.2%. At current spot price of the metals within the payable complex, those numbers jump to an NPV of $1.41B and 79.5% IRR. CAPEX for the project is estimated to be about $250M. Important to note, through all of the drilling at Cabaçal over the last few years, the company now has a reserve of 41.7Mt at 0.63g/t Au, 0.44% Cu and 1.64g/t Ag declared, including 89% in the proven category. The company expects the project to have an average annual production of 141,000 AuEq ounces with a life of mine all-in sustaining cost of $742/oz AuEq. (TSX:MNO) (OTCQX:MRRDF) News Release
G2 Goldfields published an updated mineral resource estimate for the company’s Oko Project in Guyana. The new Resource includes all drilling data obtained up to the end of January 2025 and represents a significant increase to the previous estimate released on April 3, 2024. The deposit’s total indicated gold resources increased by 60% and now sits with a total 1.5 Moz at a grade of 3.40 g/t Au. Within that lies 609,000 oz at an average grade of 10.25 g/t Au within approximately 5 to 370 m from surface, reflecting the favorable vertical zonation of the deposit. Inferred resources total 1.6 Moz @ 2.48 g/t Au and include high-grade, near surface zones at OMZ of 360,000 oz at an average grade of 7.28 g/t Au within approximately 5 to 560 m from surface. (TSX: GTWO; OTCQX: GUYGF) News Release
StrikePoint Gold announced the commencement of an infill and expansion drilling program at the Hercules Gold Project in the Walker Lane Trend of Nevada. The program is planned to be 7 to 8 holes on multiple targets on the northern portion of Hercules Gold Project, encompassing approximately 1,500 meters of drilling. The program is expected be completed in late March or early April 2025, with results to follow shortly. The program will also infill and potentially expand the mineralization on the property, moving the Company towards its goal of defining a multi-million ounce gold resource at Hercules. Last week, the Company announced the conclusion of the technical report being written on the property which included an initial gold Exploration Target of between 820,000 and 1,020,000 oz gold grading between 0.48 g/t and 0.63 g/t Au. (TSXV: SKP) (OTCQB: STKXF) News Release
And McEwen Mining has done two different investment transactions. The announced the completion of a $10M strategic investment into Goliath Resources though a non-brokered private placement. They will also become a 5.9% strategic shareholder of Canadian Gold by issuing just under 9M charity flow-through shares at a price of $.28 and purchase just under 3M common shares at a price of $.17 for approximately $3M. Upon closing of the Offering, McEwen Mining will own 5.9% of Canadian Gold's outstanding shares and 7.1% on a partially diluted basis. Post-financing, Rob McEwen, McEwen Mining's Chairman and Chief Owner, will own 32% of Canadian Gold's outstanding shares. (TSX: MUX) (NYSE: MUX) News Release
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That’s it for today everyone. Have a great day. Stay safe.
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